The ability of the tax commissioner to make disclosures regarding taxpayers receiving tax incentives; and to provide for retroactive application.
Impact
The bill carries implications for the governance of transparency regarding taxpayer benefits, particularly in the area of tax incentives. By permitting disclosure of the amounts associated with these incentives, the bill aims to provide the legislative assembly with better insights into the effectiveness and use of tax-related benefits. This could lead to more informed discussions and decisions on potential reforms or adjustments to tax incentive programs in North Dakota.
Summary
Senate Bill 2038 amends the North Dakota Century Code to enhance the tax commissioner's ability to disclose information regarding tax incentives claimed by taxpayers. Specifically, it allows the tax commissioner to disclose the amount of any tax deduction or credit claimed or earned by a taxpayer when requested by the chairman of the legislative management or a standing committee. Importantly, this bill ensures that taxpayer names or other identifying information are not disclosed, maintaining a level of confidentiality while promoting legislative oversight of tax incentives.
Sentiment
The sentiment surrounding SB2038 appears to be generally positive, with a unanimous vote of 46-0 in the Senate and 91-0 in the House, indicating broad legislative support for the measure. It suggests that the bill is seen as a step toward greater transparency and accountability in the administration of tax incentives, reflecting a cooperative spirit among state legislators. However, details about public sentiment outside legislative circles remain unreported, and further discussions may reveal varied opinions among constituents.
Contention
Notably, the bill includes a provision for retroactive application, meaning it will also apply to tax incentives claimed after December 31, 2024. This aspect could be a point of contention, as it affects previous records and might raise questions about the implications for taxpayers who have previously claimed these incentives. While the intention is to enhance transparency, the retroactive aspect might lead to debate about fairness and the unforeseen consequences for taxpayers.
Budget section approval limits for the flexible transportation fund; to provide for a legislative management study; to provide for a legislative management report; to provide for retroactive application; and to provide an effective date.
The clean sustainable energy authority's fertilizer development incentive program; to provide for retroactive application; and to provide an effective date.
The salary of the state tax commissioner, property assessment increase notices, and use tax exemptions; to provide an exemption; to provide for a transfer; to provide an effective date; and to provide an expiration date.
A transfer of Bank of North Dakota profits to the water infrastructure revolving loan fund; to provide for a transfer; to provide for retroactive application; and to provide an effective date.
The state leave sharing program, capitol grounds rent collections, and the law enforcement retirement program; to provide for a transfer; to provide an exemption; to provide a report; to provide for a retroactive application; and to provide an effective date.
Use of the North Dakota development fund; to provide for a legislative management report; to provide for retroactive application; and to provide an effective date.
Baseline funding and the determination of state school aid, loans from the coal development trust fund, and evidences of indebtedness; to provide an appropriation; to provide for retroactive application; and to provide an effective date.
A transfer of Bank of North Dakota profits to a water infrastructure revolving loan fund; to provide for a transfer; to provide an exemption; to provide for a legislative management study; to provide a report; to provide a penalty; to provide for application; to provide a retroactive effective date; to provide a contingent effective date; to provide an effective date; and to declare an emergency.